Wednesday, August 8, 2012

EIA Short Term Energy Outlook: Natural Gas Production/Consumption

From the EIA:

U.S. Natural Gas Production and Imports

Total marketed production of natural gas grew by 4.8 Bcf/d (7.9
percent) in 2011. This strong growth was driven in large part by
increases in shale gas production. EIA expects continued year-over-year
growth in 2012 of 2.5 Bcf/d. EIA, however, expects a small drop in
production in the coming months, reflecting both expected losses from
hurricanes (2012 Outlook for Hurricane-Related Production Outages in the Gulf of Mexico)
and declines related to recent drops in the rig count.

According to
Baker Hughes, the natural gas rig count was 498 as of August 3, 2012,
compared with 811 at the start of 2012. While some declines in
production have occurred so far in 2012, production remained flat from
April to May. Declining production from less-profitable "dry" natural
gas plays such as the Haynesville Shale, as well as the continued
long-term decline in the Gulf of Mexico, is offset by growth in
production from liquids-rich natural gas production areas such as the
Eagle Ford and wet areas of the Marcellus Shale, and associated gas from
the growth in domestic crude oil production....MORE